NSE lifts suspension on shares of FTN Cocoa Processors

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By Kayode Tokede

The Nigerian Stock Exchange (NSE) has lifted suspension placed on the trading of FTN Cocoa Processors Plc shares.

The Exchange last month suspended FTN Cocoa Processors Plc, Medview Airline Plc, Niger Insurance Plc, R.T. Briscoe (Nigeria) Plc, Union Dicon Salt Plc and Capital Oil Plc for failing to comply with post-listing requirement.

NSE regulations demand that all listed companies submit their annual audited report and financial statement not later than 90 days after the end of the financial year.

The deadline was extended by 60 days till May 29 to accommodate disruptions by the COVID-19 pandemic.

However, the Exchange in a notice during the weekend said, “We refer to our market bulletin dated  September 1, 2020 with reference number: NSE/RD/LRD/MB43/20/09/01, wherein we notified dealing members of the suspension of six listed companies for non-compliance with Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (‘Default Filing Rules’), which provides that; “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will:

“Send to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and Notify the Securities and Exchange Commission (SEC) and the Market within 24 hours of the suspension.”

According to the notice, FTN Cocoa Processors, one of the six listed companies that were suspended on 1 September 2020, has now filed its outstanding financial statements with The Exchange.

The notice stated that, “In view of the Company’s submission of its outstanding financial statements, and pursuant to Rule 3.3, of the Default Filing Rules, which states that; “The suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

“The Exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted”, Dealing Members are hereby notified that the suspension placed on trading on the shares of FTN Cocoa Processors Plc was lifted on November 27, 2020.”

Meanwhile, the NSE said the FTN Cocoa, five others firms were suspended following the expiration of the “grace” period and several notifications requesting the submission of the financial statements.

The bourse said the suspension will be lifted when the accounts are submitted provided “the exchange is satisfied that the accounts comply with all applicable rules of the exchange.”

In July, NSE warned investors to be careful when dealing with the shares of 13 companies after their failure to meet regulatory deadlines for the submission of their financial statements without offering reasons for doing so.